2014 WinGAP Conference Al Deen and Tracy Thomas

Transcription

1 2014 WinGAP Conference Al Deen and Tracy Thomas Savannah, Georgia Marriott Riverfront Hotel September 25 th and 26 th, 2014 Introduction Tracy Thomas Georgia Department of Revenue, Business Analyst, 23 years 404/

2 9/19/2014 My Greatest Accomplishments 2

3 9/19/2014 3

4 Introduction Al Deen Bacon County BOA Chairman and Appraiser Cherokee County Senior Personal Appraiser Fulton County Commercial Personal Appraiser Department of Revenue Field Agent Lee County Deputy Chief Appraiser 4

5 Fun Heart 5

6 Personal Property Items NAICS Codes What are we? NAICS Analysis NAICS Codes In House Report Consistency House keeping -Verify NAICS Square Foot Analysis Original Cost verses Acquisition Cost Detailed Itemization verses grouped asset (Sch A) Audit Selection NAICS Codes What are NAICS Codes and How Can they help us do a better job in the Tax Assessors Office? NAICS Code Structure: First Two Digits: Business Sector (Most General) Manufacturing Third Digit: Denotes a Sub Sector. Motor Vehicle Manufacturing Fourth Digit: Defines Industry Group. Sports Utility Vehicle Manufacturing Fifth Digit: Defines more specifically. Sports Utility Vehicle Chassis Manufacturing Six Digit: Specifies National Industries... U.S. Sports Utility Vehicle Chassis Manufacturing 6

7 NAICS Codes What are NAICS Codes and How Can they help us do a better job in the Tax Assessors Office? NAICS Codes range from 1 to 92. Example: NAICS codes that begin with 11 denote Agricultural, Forestry, Fishing, and Hunting Sectors NAICS codes that begin with 23 denote Construction Sectors NAICS Codes represent Manufacturing Sectors NAICS Codes represent Retail Trade Sectors NAICS Codes What are NAICS Codes and How Can they help us do a better job in the Tax Assessors Office? Tid Bits NAICS codes were created primarily to replace the previous system that was known as SIC. SIC stands for Standard industrial classification and were four digit codes and its coeds worked similarly to NAICS codes. However, NAICS codes cover the three North American counties, whereas SIC codes did not define an industry s country of origin. Therefore, NAICS codes are more detailed and useful in denoting the country in which a specific industry is located. 7

8 NAICS Codes NAICS Codes help us all do a better job by enabling homogeneous grouping which is much more accurate with the proper application of these industry codes within your County. NAICS Codes NAICS Report In-House Report Identifying Codes that will be used This insures that each like business has the same code as others- Extremely important come reporting time Run this report and share with your appraisal staff Example: Code 4411 Automotive Dealers Apply this Code to All Automotive Dealers in your County 8

9 NAICS Codes Each WinGAPCounty has a NAICS table which contains the following information: NAICS Codes are used in many applications like NAICS Codes Below is an example of our Internal NAICS report (A report pulled from the WinGAP NAICS Table) Start verifying the integrity of these codes by making sure all of your Automobile Dealers have the NAICS Code of I ll be happy to share this report with you: al.deen@lee.ga.us 9

10 NAICS Codes Just for Extra Fun: Notice NAICS is using drilldown reporting options. For more: See Tracy Thomas (SQL Classes) Start verifying the integrity of these codes by making sure all of your Automobile Dealers have the NAICS Code of I ll be happy to share this report with you: al.deen@lee.ga.us NAICS Codes Start verifying the integrity of these codes by making sure all of your Dry Cleaners have the NAICS Code of select owner.lastname,personal.perskey,personal.propclass,personal.curr_val,personal.meff_val,personal.naics,naics.n UMTEXT FROM OWNER INNER JOIN PERSONAL ON OWNER.OWNKEY = PERSONAL.OWNKEY INNER JOIN NAICS ON PERSONAL.NAICS = NAICS.NAICS where PERSONAL.PROPCLASS='C' or PERSONAL.PROPCLASS= I' order by PERSONAL.NAICS 10

11 Electronic Asset Files Tracy will talk about this later in the presentation Electronic Files Provided to County by Company Benefits Company Exported Directly from their Tax Program Receive back in same format from County Benefits County Easier to use than paper copies Can back to the company for reconciliation Easier for Large Accounts / Not so much on Small Grouping and Detail Laws and APM that indicate detailed vs grouped reporting is best. APM Verification: The appraisal staff shall review and audit the return in accordance with the policies and procedures set by the County board of tax assessors consistent with Georgia law and this Rule. This can t be done without a detailed list of assets and inventory. 11

12 Grouping and Detail Laws and APM that indicate detailed vs grouped reporting is best. APM Omission and Undervaluation: If not otherwise profited by law of this rule, the appraisal staff shall recommend an additional assessment to the boat when any review or audit reveals that a property owner has omitted from their return any property that should be return. The appraisal staff shall also recommend a reduction when an overstatement is discovered. Can t determine either of these without detailed list. Grouping and Detail Laws and APM that indicate detailed vs grouped reporting is best. APM Economic Life Groups: the appraisal staff shall separate the individual items of property into four economic life grouping s that most reasonable reflect the economic life of such property. The appraisal staff shall use table B1 and B2 of publication 946 to classify EACH asset into the appropriate group! Without detail we ACCEPT their grouping.. 12

13 Grouping and Detail Laws and APM that indicate detailed vs grouped reporting is best. O.C.G.A The board shall examineall returns of personal property. Examine-An investigation, to search out, an inspection, an interrogation, a discovery. How can you examine a return if there s no supporting information (asset list)? You can t. Grouping and Detail Accepting Company reported Schedule A values is also accepting Company grouping which may at times conflict with your in-house uniform grouping efforts. 13

14 Grouping and Detail Detailing assets as shown below will result in uniform grouping and proper verification. Grouping and Detail Company Lump Grouping 152, ,087 3,041 Detailed In- House Grouping 14

15 Grouping and Detail It is impossible to accomplish this without a detail of assets. Laws and APM that indicate detailed vs grouped reporting is best. O.C.G.A if in the opinion of the board any taxpayer has omitted from such taxpayers returns any property that should be returned or has failedto return any of such taxpayers property at its FMV, the board shall correct the returns, assess and fix the FMV. Grouping and Detail Laws and APM that indicate detailed vs grouped reporting is best. O.C.G.A taxpayers are fairly and justly equalized.. Example Copier in Group 1 and Group 2 Variance Reports Enabled!!! With asset itemization you can run variance reports that catch grouping issues like below: 15

16 Grouping and Detail Absent a list of MEFF you cannot uniformly group assets therefore this code section isn t followed Laws and APM that indicate detailed vs grouped reporting is best. O.C.G.A The board shall see that all taxable property with the county is assessed and returned at its FMV and that FM values as between the taxpayers are fairly and justly equalized.. Example Copier in Group 1 and Group 2 Grouping and Detail Laws and APM that indicate detailed vs grouped reporting is best. O.C.G.A It shallbe the duty of the county board of tax assessors to investigate diligently and to inquire into the property owned in the county for the purpose of ascertaining what real and personal property is subject to taxation Investigate To trace or track, to search into, to examine and inquire with care and accuracy, the taking of evidence. Diligently attentive, persistent in doing a thing, steadily applied, unremitting, intent upon ascertaining fact, ascertain the truth. 16

17 Grouping and Detail Laws and APM that indicate detailed vs grouped reporting is best. O.C.G.A (Point of Ponder) The board shall make such investigation as may be necessary to determine the value of any property upon which for any reason all taxes due the state or the county have not been paid in full as required by law. Kind of Cool In that this appears to open the door up for County to County relationships to make certain the property is on a digest in GA. In other words, don t release a boat without making certain it is properly returned in another County. Example-boat owner in Lee County stating that his boat is in Bacon. Call Bacon or send them the information on the boat. Don t just remove it and forget it. Grouping and Detail Laws and APM that indicate detailed vs grouped reporting is best. O.C.G.A In all cases where unreturned property is assessed by the BOA after the time approved by law for making tax returns has expired, the board shall add to the amount a penalty of 10 percent.. Compliance regarding penalty assessment is complicated and less accurate without a complete list of MEFF. 17

18 Grouping and Detail Laws and APM that indicate detailed vs grouped reporting is best. O.C.G.A You can t ascertain what s taxable when there s no asset list. Further when a company lists a disposal amount you don t know what is being removed from the company asset bank. Disposals.. Audit Selection Criteria Audits and the selection of accounts: The APM states that all accounts must be reviewed and or audited. Which includes: *Business Accounts *Boat Accounts *Aircraft Accounts 18

19 Audit Selection Criteria *APM: Audit Selection Criteria [section (4)(e)] The appraisal staff shallrecommend to the board of tax assessors a review and selection criteria, and the appraisal staff shallfollow such criteria when adopted by the board. The criteria should be designed to maximize the number of personal property tax returns that may be reviewed or audited with existing resources. The criteria should be fair, unbiased, and developed consistent with the requirements of Code Section All personal property accounts should be reviewed or audited at least once every three years. Audit Selection Criteria O.C.G.A (a) It shall be the duty of the county board of tax assessors to investigate diligentlyand to inquire into the property owned in the county for the purpose of ascertaining what real and personal property is subject to taxation in the county and to require the proper return of the property for taxation. The board shall make such investigation as may be necessary to determine the value of any property upon which for any reason all taxes due the state or the county have not been paid in full as required by law. 19

20 Audit Selection Criteria Fairly selected in an unbiased manner. All Accounts. On a cycle ( 3 years). Could possibly push 4. Any cycle is better than no cycle. Audit Selection Criteria The Board of Assessors, consistent with Georgia law*, shall audit all personal property returns in Lee County over the course of a three year time period. The criteria for account selection will be fair, unbiased, random and consistent with the requirements of O.C.G.A **. The selection process will occur as follows: 20

21 Audit Selection Criteria All accounts will be ranked in size according to their Fair Market Value to include seven categories - - Class 1 Under $7501 (Exempt) - Class 2 $7501-$50,000 - Class 3 $50,001-$250,000 - Class 4 $250,001-$1,000,000 - Class 5 $1,000,001-$5,000,000 - Class 6 $5,000,001-$50,000,000 - Class 7 Over $50,000,000 Audit Selection Criteria One third of each category will be audited each year of the three year program The first account, and every third account thereafter will be selected for review until the number of audits has been performed for each year of the program. Class 1 accounts will be exempt for the selection criteria, but will be reviewed at least once every three years. All accounts that fail to file a return shall be audited each year. All accounts with excessive decreases will be audited as deemed necessary by the chief appraiser with approval from the board of assessors. All accounts with disposals reported but not detailed will be audited as deemed necessary by the chief appraiser with approval from the board of assessors. The list from which selections are made shall be made available for inspection upon request. 21

22 Audit Selection Criteria This policy shall not be so restrictive as to prevent any account from being audited as the need should arise due to unforeseen circumstances. If additional audits outside of the scope of this policy should arise, they shall be presented to the board of assessors for approval prior to review. Building SF BOE Report Subject and comps based on NAICS and BldgSF Parameter for SF range, or leave blank and get them all Audit selection to identify accounts that vary beyond a fixed % and mark those as selected for audit Sample audit selection criteria text that allows for selection by red-flag outside of standard three year review cycle. 22

23 Commercial / Industrial PP Accts As you can see on the next slide..many of us have a bit of work cut out for us: Commercial and Industrial Accounts need to have the square footage entered on the personal property general information screen: Commercial/ Industrial PP Accts County Real Accts Pers Accts Accts w/ SF % Accts w/ SF A 34,084 1, % B 21,591 1, % C 39,931 4, % D 34,085 3, % E 18,497 2, % F 12, % G 20,488 1, % H 63,749 7, I 17,804 1, % J 24,564 2, % K 11, % L 61,295 3, % M 75,343 5, % N 68,830 6, % 23

24 Commercial/ Industrial PP Accts All Dollar General Accounts in the County Commercial/ Industrial PP Accts Problems? INVN OK? MEFF OK? 24

25 Personal Property Gen Info Live Link to Real Property Select an Account Open It Entry of Valid Parcel Number is Required Once Parcel Number is provided, click the Parcel_No button 25

26 Real Property General Information Screen is opened Access to Buildiing Information available to obtain SF info 26

27 Reporting Costs Original Cost verses Acquisition Cost A.P.M. Basic cost approach. The appraisal staff shall determine the basic cost approach value of machinery, equipment, furniture, personal fixtures, and trade fixtures using the following uniform four-step valuation procedures: Determine the original cost new of the item of personal property to the property owner; determine the uniform economic life group for the item of personal property; and multiply the original cost new times the uniform composite conversion factor appropriate for the economic life group and actual age of the item of personal property. Then determine a salvage value of anyitemofpersonalpropertywhenitistakenoutofuseattheend of its expected economic life. Reporting Costs Original Cost verses Acquisition Cost A.P.M. Original cost new. The appraisal staff shall determine the original cost new of the item of machinery, equipment, furniture, personal fixtures, and trade fixtures. Any real improvements to the real property, including real fixtures that had to be installed for the proper operation of the property, shall be included in the appraisal of the real property and not included in the basic cost approach value of the personal property. Those portions of transportation costs and installation costs that do not represent normal and customary costs for the type personal property being appraised shall be excluded from the original cost new when determining the basic cost approach value. 27

28 Reporting Costs Original Cost verses Acquisition Cost A.P.M. Original cost new. The appraisal staff shall determine the original cost new of the item of machinery, equipment, furniture, personal fixtures, and trade fixtures. As indicated on the instructions sheet of the PT50P Reporting Costs Original Cost verses Acquisition Cost A.P.M. Original cost new. The appraisal staff shall determine the original cost new of the item of machinery, equipment, furniture, personal fixtures, and trade fixtures. As indicated further on Schedule A of the PT50P 28

29 Importing Assets TracyThomas is going to cover this!! Booya!! Importing Assets Any format received from property owner Map columns to fields in wingap Column A = Item Description Column B = Acquisition Year Reformat received sheet to a fixed layout Basically standardizes option 1 above We desire column a be the item description Company submits acquisition year in column A, and description in column b. We reformat to our fixed layout before import. Demand a fixed format from the companies wishing to submit assets electronically. 29

30 Importing Assets Required Fields MEFF Key Account Number Acquisition Year Group Cost (Original Cost New) Valuation Method Cost vs Market If Cost method, COST VALUE required If Market method, MARKET VALUE required Item Description? Screen doesn t require it, but why in the world would we not enter it? Total MEFF Value for the account Updating total account value Updating assessment reasons Updating assessment notice flag Importing Assets - Risks Must be careful of running this mass import while others are manually entering assets simultaneously Simultaneous work increases risk of duplicate MEFF Key values 30

31 Here we go Step 1 Import XLS into MSSQL using SSMS 31

32 Change data source to Excel 32

33 Select location of Source file from company this example bibb.xls 33

34 34

35 Change file name to logical name: example = bibbassets1 35

36 36

37 Execute query to see results of import 37

38 Step 2 Now the heavy lifting Setup A query must obtain the highest current MEFF Primary Key as starting point of import keys Query must have the PP Account number provided. 38

39 Test with a Select First Some of these items have no description, we should add one. Setup Item Description will only hold 30 characters so we have to limit the electronically provided descriptions to 30 39

40 Setup Asset calculations on screen require FUNC and ECON factors to calculate ~ we ve got to handle that in our script. Setup FUNC_OBS and ECON_OBS added 40

41 MoJo Setup Keys and Account Number INSERT STATEMENT to push MEFF assets onto the account Select statement represents the assets to be pushed Account Screen Before Mojo 41

42 MEFF Screen Before MoJo Execute Query 42

43 Account Screen After MoJo MEFF Screen After MoJo New Items with zero value 43

44 Reappraise Newly Inserted Assets MEFF Screen after repricing 44

45 MEFF Screen after repricing Account After Repricing 45

46 Are we done? Tidy Up at a minimum you must Add Assessment Reason(s) All assets in this example were added to group 3 because the property owner didn t provide any estimation of groups. Appraiser should inspect each asset and assign the correct GROUP. 46

47 Audit Screen Audit Screen 47

48 Audit Screen Audit Screen Each Action is saved automatically with the date of the action 48

49 Audit Screen When user selects a new correspondence and saves that change, the report will automatically preview to allow user to print Audit Reports Check List Initial Request Letter On-Site Notification Letter Second Request Letter Back Audit Letter Results Less Than 7500 Results Change Results No-Change 49

50 Audit Reports All Reports are conceptual at this stage Reports will be distributed as templates allowing the county an easy place holder to create their own custom letters and solutions within the provided report type/categories. Checklist 50

51 Initial Request Bar Codes? 51

52 Caption This Cartoon Gappy Says: Go See Your Vendors 52

53 Adjourn 53